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Business

Dennis Uy's DITO empire widens losses in first half

Ramon Royandoyan - Philstar.com
Dennis Uy's DITO empire widens losses in first half
Davao-based businessman Dennis Uy
Bworldonline / Victor Saulon

MANILA, Philippines — DITO CME Holdings Corp., the media and ICT company of Davao-based businessman Dennis Uy, widened its losses in the second half on the back of increasing costs and expenses, all while managing billion in dollar-denominated loans that are falling due this year. 

In a disclosure sent to the Philippine Stock Exchange on Tuesday, DITO CME, also the parent company of third telco player Dito Telecommunity Corp., reported a net loss that bloated 304.67% year-on-year to P15.43 billion in the first half of the year. 

DITO CME noted P7.26 billion in unrealized foreign exchange losses, reversing a gain in the same period. Likewise, costs and expenses shot up 135% on a yearly basis to P9.82 billion in the first semester. 

Depreciation and amortization expanded 137% year-on-year to P3.98 billion in the first half due to a growing capital expenditures bill following its telco’s expansion plans nationwide. 

The company’s liabilities, which include loans, amounted to P171.44 billion as of the first six months. This was markedly larger than the audited P139.24 billion it reported last year. 

The losses were so extensive that it overshadowed a five-digit explosion of its P3.03 billion revenue haul courtesy of its China-backed telco firm in the first half. 

The company reported $1.18 billion were released from $1.30 billion worth of loans taken out from various financial institutions. These loans had maturity dates from April to October this year. 

“We are confident that the bridge loan facilities will be renewed until such time that these loan availments are converted into our arranged long-term loans with the same creditor banks,” said Joseph JohnOng, company chief finance officer. 

The $500 million loan taken out by Dito Telecommunity from China Minsheng Banking Corp. was renewed to May 2023. On the other hand, the company reported Dito Telecommunity’s $800-million loans from several Bank of China branches are expected to be renewed before it reaches maturity.

Shares in DITO CME closed down 0.53% to P3.76 apiece on Tuesday.

DITO TELECOMMUNITY CORP.

PHILIPPINE STOCK EXCHANGE

UDENNA CORP.

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